If a Bang Cookies franchisee wants to use an unapproved supplier, what must they do?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information, samples, and testing data that we may request. We may charge you a fee equal to the costs and expenses that we incur in reviewing and evaluating an alternate supplier, product, and/or service requested by you. We may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time not exceeding 60 days after we receive your written request and all additional information and samples that we request. We may, in our sole discretion, withhold our approval. We do not make our procedures or criteria for approving suppliers available to our System franchisees, except that when evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the suppliers quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the suppliers approval, in our sole determination, will allow us to advance the overall interests of the System and our company.
We estimate that your purchase of goods and services from suppliers according to our specifications,
including your purchase of goods or services from our designated exclusive suppliers, to represent approximately 80% of your total purchases and leases in establishing the Franchised Business and approximately 60% of the on-going operating expenses of the Franchised Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, if a franchisee wishes to purchase or lease source-restricted items from a supplier not already approved by Bang Cookies, they must first seek written approval from the company. This request must be accompanied by any additional information, samples, and testing data that Bang Cookies may require to evaluate the proposed supplier. Bang Cookies may also charge a fee to cover the costs and expenses incurred during the review process.
Bang Cookies may request samples from the supplier for testing and documentation for evaluation. Bang Cookies also retains the right to inspect the supplier's facilities. The franchisee will be notified of Bang Cookies's decision, whether approval or disapproval, within a reasonable timeframe not exceeding 60 days after the receipt of the franchisee's written request and all required supporting information and samples. However, Bang Cookies maintains the sole discretion to withhold approval.
The criteria Bang Cookies uses to evaluate suppliers are not disclosed to franchisees, except that Bang Cookies will consider whether the supplier can meet their standards, specifications, and production requirements, the supplier's quality control, whether Bang Cookies or its affiliates are the exclusive supplier of the item, and whether approving the supplier will advance the overall interests of the Bang Cookies system.
Bang Cookies estimates that purchases from approved suppliers will constitute approximately 80% of the franchisee's total purchases and leases when establishing the Franchised Business and about 60% of the ongoing operating expenses. This highlights the importance of understanding and adhering to Bang Cookies's supplier restrictions and approval processes.